FX.co ★ Elliott wave analysis on Gold for August 4th, 2022.

Black lines- bullish channel

Red lines- expected path

Gold price continues making higher highs and higher lows. Today Gold price made a new higher high at $1,791. The RSI did not follow and made a lower high providing another bearish divergence warning. Using Elliott wave analysis we reach the same conclusion as with our technical analysis. Gold price is most probably at its 5th wave part of an impulsive upward wave that started at the low of July 21st. Price is inside a bullish short-term channel and is in the process of completing the final 5th wave. This is a bullish indication, however a pull back to form wave 2 is expected before we continue higher. Gold price is expected to make a pull back towards $1,750 at least before continuing higher. In the near term Gold price could reach $1,810 by tomorrow but we believe the new high is not sustainable. Price is vulnerable to a pull back as a wave 2 or B correction.